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The Amount of Deadweight Loss That Results from a Tax

Question 36

Multiple Choice

The amount of deadweight loss that results from a tax of a given size is determined by


A) whether the tax is levied on buyers or sellers.
B) the number of buyers in the market relative to the number of sellers.
C) the price elasticities of demand and supply.
D) the ratio of the tax per unit to the effective price received by sellers.

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